Dubai well on its way towards AED 1 trillion in property sales

There was no shortage of speculation around a potential market slowdown in 2025. Yet when you step back from the naysayers and look at the data, a different picture emerges. One defined less by rapid churn and more by deliberate decision making, longer holding periods and a growing preference for stability.

Our 2025 Market Reports showed that total residential sales value rose 26.9% year-on-year (YoY) to AED 541.52 billion, pushing total real estate transactions to AED 753 billion and keeping Dubai firmly on track towards the AED 1 trillion target set out in the Dubai Economic Agenda 2033. This was not momentum driven by speculation alone. It reflected broader participation across investors and end users, alongside rising transaction volumes and measured price growth.

Simon Baker, Managing Director at haus & haus, sums up the tone of the year succinctly: “2025 was a time to act with intent: reposition assets where needed, hold quality stock and buy only projects with genuine long term potential.”

Families, longer ownership and reinvestment

One of the most noticeable shifts across the year was the rise in family led purchasing. Buyers looked past short term upside. Instead, they prioritised established communities, proven infrastructure and homes that could be adapted over time.

Thomas Poulson, Sales Director at haus & haus, notes a change in owner behaviour rather than location preference: “Established communities continue to attract strong buyer interest. What’s changed is the level of reinvestment, with more owners renovating to enhance value rather than moving on.”

This trend reflects a market that is maturing. Rather than exiting at the first opportunity, owners are choosing to improve, extend and hold, reinforcing longer ownership cycles and supporting price resilience in well-established neighbourhoods.

Leasing stability beneath the headlines

While residential sales often dominate market conversations, leasing quietly reinforced the same theme of stability. Contract renewals continued to outpace new leases, with 369,574 renewals recorded compared to 214,369 new contracts in 2025. Many tenants opted to remain within familiar communities, even as some gave up their rentals and transitioned into homeownership.

From a business perspective, haus & haus saw registered tenants increase by 35% over the year, with our network now comprising over 140,000 registered tenants and buyers.

Joy Eaton, Leasing Director at haus & haus, highlights how performance varied by area and affordability rather than market direction: “Certain communities continue to perform consistently for tenants, including Jumeirah Village Circle (JVC) for affordability, Business Bay as Peninsula hands over and areas like Arjan and Sports City where demand for bigger unit types such as villas and townhouses remain popular.”

The data supports this. Average rental yields moderated slightly to 6.76%, largely due to capital values rising faster than rents, not because of weakening leasing fundamentals.

By global standards, yields in well located, community centric developments remain competitive.

For a breakdown of residential sales & leasing in 2025, download the Market Report today.

Off Plan: understanding the real picture

Off Plan sales value climbed 31.3% to AED 395.3 billion in 2025, reinforcing confidence in Dubai’s long term planning and development pipeline. However, a closer look at the data reveals an important nuance.

While many under construction properties are recorded as resale transactions, combined under construction activity including both primary developer sales and Off Plan resales accounted for 73% of all residential transactions, reflecting an appetite for new supply.

Paul Sharland, Off Plan Director at haus & haus, emphasises the importance of selectivity at this stage of the cycle: “2025 was about managing expectations and ensuring investor strategies align with Dubai’s long term direction. We continue to recommend projects we would buy ourselves, with a stronger focus on care and selectivity as the market matures.”

Apartments dominated Off Plan performance, generating AED 247.2 billion in sales value, driven by demand for one and two bedroom layouts that offer flexibility, rental demand and exit optionality. Villas also saw strong growth, with sales value rising 35.6%, reflecting sustained interest in land backed assets among higher net worth buyers.

For a more in-depth review of Dubai’s Off Plan market, download the 2025 Off Plan Market Report.

Commercial property: structurally supported growth

The commercial property sector also recorded notable growth, with total sales value increasing by over 40% and transaction volumes rising by 8.85%. This performance was underpinned by sustained business formation and economic expansion, with an estimated 250,000 companies launching operations in 2025 alone.

The result is a growing need for office space, creating consistent demand across both office sales and rentals, particularly in well located, high quality buildings that align with how modern businesses operate and position themselves. It is therefore no surprise that office sales delivered the standout performance, with transaction values rising by 102% to AED 13.14 billion, pushing average prices per sq.ft up by 35%.

The best thing you can do for yourself in 2026 is to understand what’s happening with the Commerical market. Download the report here. 

A market defined by intent, not acceleration

Taken together, the 2025 data points to a market that is evolving rather than overheating or retreating. Buyers and investors are acting with greater clarity, favouring quality, location and long term fundamentals over rapid turnover.

For those willing to take a measured, evidence led approach, the opportunities remain very much intact.  Speak to our team for considered investment advice aligned with your portfolio and Dubai’s long term outlook.